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We were approached recently by a landowner who had obtained planning permission on a parcel of her land, adjoining a business premises.

She had no development experience, and required help to raise the development finance and project manage the development.

Attempt 1

We approached the “usual” development lenders but were unsuccessful.
They were unwilling to lend to someone with no experience, and on a “small” £300k building contract.

Attempt 2

Then we secured lending based on PropVestments’ track record from one lender, to undertake the project as a joint venture. However this was the week leading to BREXIT, and so at the last minute even this lender pulled the plug.

Attempt 3

Another development lender, however their rates were comparable to bridge lending and to make matters worse, their lead time was 6-8 weeks for credit approval.

Solution: Non traditional Development Finance

Finally PropVestment arranged finance with a private bridge funder, with favourable rates and monies disbursed within a few days. To make matters even better, the bridge was structured like development finance with monitoring surveyor sign off in stages. This means the landowner does not have to pay the interest on the full amount like many other bridge loans.

The build process is well underway, a happy land owner, and solution provided in a tricky situation.

Development can be undertaken by anyone, with the right guidance and partners you can make a success of it. Do not be intimidated by rigid lenders and red tape.

PropVestment can help project manage, secure development finance and recommend contractors and property professionals.

Do you have a plot of land which has development potential?

Do you need advise in how to maximise the potential value of your land?

Do you need help securing development finance?

We have experience and the professional network that can ease the stresses of property development and allow you to realise the returns hidden in your property.

The Court of Appeal ruling on the exemption of small residential sites (10 homes or fewer) from affordable homes obligations has been published on Monday 16th May 2016.

Reading Borough Council and West Berkshire District Council quashed this Government policy, through winning a High Court ruling in July 2015.

However, today the government has won the legal challenge in the Court of Appeal. Consequently the Planning Policy Guidance text has been reinstated.

No affordable housing provision or contribution is therefore required for small scale developments, incorporating schemes of 10 or less units (five dwellings in designated rural areas), or a maximum gross floor space of 1,000 sq m. CIL contributions will still be required for these proposals where CIL has been adopted.

Section 106 (S106) of the Town and Country Planning Act 1990 allows a local planning authority (LPA) to enter into a legally-binding agreement or planning obligation, with a land developer over a related issue. The obligation is sometimes termed as a ‘Section 106 Agreement’.

Such agreements can cover almost any relevant issue and can include sums of money. Possible examples of S106 agreements could be:

• The developer will transfer ownership of an area of woodland to a LPA with a suitable fee to cover its future maintenance

• The local authority will restrict the development of an area of land, or permit only specified operations to be carried out on it in the future e.g., amenity use

• The developer will plant a specified number of trees and maintain them for a number of years

• The developer will create a nature reserve

S106 agreements can act as a main instrument for placing restrictions on the developers, often requiring them to minimise the impact on the local community and to carry out tasks, which will provide community benefits.

https://i0.wp.com/www.propvestment.com/wp-content/uploads/2016/05/2960675738_229cfdb82f_o.jpg?fit=2911%2C194119412911Niravhttp://www.propvestment.com/wp-content/uploads/2016/03/Propvestment-logo-6-1030x807.jpgNirav2016-05-17 08:34:022016-05-17 08:34:02S106 update: Exemption held for development sites with 10 or less units

The Prime Minister announced today that the Permitted Development Rights that enabled office to residential conversion without full planning permission is set to be made permanent. The scheme with initially ran from 2013 to May 2016 will be extended indefinitely.

This is great news for potential buyers of homes as well as property developers and all professionals connected to the industry. It will mean an flood of new development sites to the market and an increase in available housing stock. This should start to be realised within 12 to 18 months, the usual length of time required to convert a building.

Office blocks are usually in inner city location or near transport links making them ideal locations for residential units. Perfect for young buyers who rely on these links. Furthermore converted building are typically cheaper than new builds and many often come with a character that new builds just do not.

We at PropVestment are actively looking for office sites to convert into residential units, please email nirav@propvestment.com.

For many years now it has been the norm that we take our cars to the dealer and part exchange them when upgrading to a newer or larger one, however this is a phenomenon becoming increasingly more occurrence in the UK property market.

What is Part Exchange or “PX”?

In a similar way to how it works for cars, you are looking to buy a new house, but can not sell your current house privately, and the agent/seller of the house you are interesting offers to take your existing house or old property as part exchange for the new one.
The biggest challenge is finding a seller willing to do this, and like cars it is usually only the big builders of new homes. They are keen to sell and often have a handsome profit margin from the construction to selling price.

‘PX’, as it is known in the property trade, allows greater financial and timescale certainty for sellers, especially in today’s dipping and uncertain market, where homes are taking months just to find a buyer plus months more for paperwork to be finalised.

Developers are the biggest promoters of PX facilities, mostly to help shift homes priced between £200,000 and £400,000. They believe it tempts buyers into moving more rapidly, because in theory it can avoid delays incurred by registering with estate agents, arranging viewings for prospective buyers, and negotiating over offers.

But while it can clearly be helpful for sellers, there is a hitch. Those opting for PX must accept less than the market value for their old home in return for the certainty of being able to get it off their hands.
The developer typically offers around 90 – 95% of the market value of your current home, but it’s a guaranteed sale, it usually happens fast, and it avoids the need for estate agency fees.Read more →